SME Association of Malaysia has called for stronger wage subsidies and incentives under the Progressive Wage Policy after the government temporarily exempted micro, small and medium enterprises (MSMEs) from further minimum wage increases.
The association’s national president Dr Chin Chee Seong said the temporary exemption would give businesses much-needed breathing room amid rising operating costs, while helping them preserve jobs, maintain business continuity and remain competitive.
However, Chin said more support is needed if businesses are expected to raise workers’ wages sustainably.
He urged the government to increase financial assistance under the Progressive Wage Policy, widen the programme’s coverage and simplify its application and approval processes to allow more MSMEs to participate.
He explained that stronger subsidies would give smaller businesses greater capacity to improve employee remuneration while continuing to invest in productivity, digitalisation, skills development and training.
Chin maintained that higher wages and business competitiveness need not be conflicting objectives, provided wage growth is accompanied by productivity improvements and adequate support for employers.
